Video Title: What Is PMI?
Video Text : Private Mortgage Insurance, commonly referred to as PMI, is a type of insurance that protects the lenders investment and is required on conventional loans where the loan amounts is greater amount is greater than 80% of the loan amount or the purchase price. The two most common types of mortgage insurance are borrower paid and lender paid. Borrower paid, or BPMI, is a pre-determined premium that is added to your monthly payment. This premium will remain in the monthly payment until you have invested 20% equity in the property at which point you can refinance out of the PMI. Lender Paid Mortgage Insurance, or LPMI, allows you to waive the monthly premium amount in exchange for a slightly higher interest rate. Typically the overall monthly payment on a loan with LMPI is less than a loan with BPMI. Whichever type of Mortgage Insurance you choose, we’ll monitor your loan after closing and let you know when you are eligible to remove the PMI or possibly refinance into a lower interest rate. Let’s talk about your mortgage options today!